The building industry is central to our economy, contributing over 13 per cent of our GDP (when you include property and real estate services) and employing over 1.15 million Australians.
But for decades, the industry has been plagued by rising costs, stagnant productivity, high waste, and low margins. The familiar image of mountains of paperwork and the hours spent processing it is just one example of how the industry continues to maintain outdated habits.
To be fair, the last 10 or so years has seen improvements: predominantly through the digitisation of documentation and project management functions and the use of mobile technology.
But the reality is the building industry has not kept pace with the rapid technological and organisational change of other sectors.
The core challenge remains the modernisation of a fragmented and adversarial industry
Late Payment And Poor Compliance Affects Everyone
The founders of Payapps were all too aware of this fragmented and adversarial approach when it came to progress claims, payment disputes and supply chain inefficiencies. Even after 10 years in business, they still find there’s some reluctance to adopt more efficient technological solutions in favour of what’s familiar.
Here are some of the key issues Payapps still find customers trying to solve:
- Chasing documentation
- Receiving inconsistent documentation
- SOPA compliance
Ultimately this results in opportunity costs as contract administrator’s (CA) and project managers spend hours chasing up subcontractors to submit their claims on time or chasing the correct documentation. CA’s and project managers are still regularly receiving claims in different formats and with inaccuracies when it comes to things like retention and claiming against the agreed scope of works.
- Unable to forecast
- Time spent on paperwork
For subcontractors late payments hit them where it hurts most – cashflow.
Using paper based, or email systems, to manage cashflow and forecast effectively is limited due to inconsistent processes and lack of collaboration with their builder.
Again, subcontractors then have to spend numerous hours reconciling previous and current claims manually.
To put it simply, these are the issues they solve for their customers.
Payapps’ Laser Focus Is The Key
Because they’re not trying to solve a million issues across the industry, we can confidently say we focus all our resources on doing one thing, extremely well.
They’re cognisant of adding value for both the builder and the subcontractor – again they believe it’s time to move away from the adversarial old ways of working and foster more collaboration.
Keeping it simple and transparent is at the core of what makes Payapps such a significant improvement on previous ways of doing things.
They help Builders remain Sopa Compliant, vastly improve the time it takes to process payment claims and ensure compliance documentation is readily accessible.
Payapps benchmarked with some of their customers and recorded increases of over 50 per cent in efficiency gains over their previous processes.
And the benefits for subcontractors are also clear: increased transparency and the removal of manual calculations make it easier to manage retention and have a clearer picture of their financial position from month to month.
They also benefit from the time and efficiency gains, especially when they use Payapps’ self-assessment features to manage all of their supplier claims as well.
The fact that they’ve retained 99 per cent of their customers since the company began and seen 1204 per cent growth over the last year alone indicates that real change is starting to take place in their patch of the construction industry.
Of course, Payapps would like to attribute their growth to solving real problems for their builders and subcontractors. But there are many in the construction sector that not only realise it’s time to adopt tech, they’re championing that change and transforming the industry.
If solutions like Payapps are becoming more of a necessity than a nice to have it’s also imperative that they integrate with your other ERP and accounting systems. Payapps is the most integration-capable claims processing system on the market.
With out of the box integration with finance systems MYOB and XERO along with Jobpac, Cheops, Sage 300, Vista, JD Edwards and eProcurement. And they’re just getting started, in 2020 they’ll also be releasing public APIs to further enhance their interoperability.
Supporting Your Collaborators
Implementing new enterprise software internally can be a challenge in itself, but in their industry, there’s added complexity in getting their collaborators on board as well.
Subcontractors in particular tend to be smaller businesses that don’t have the training resources of the big players and can engage on an irregular basis.
It can be a hard sell to engage them and understandably they can be resistant to change and more sensitive to pricing.
This is where Payapps also play a pivotal role in a successful rollout. They work in collaboration with you as the builder and with the subcontractor to ensure the change in process is as smooth as possible.
In addition to their standard implementation training and assistance, they’ve developed online video resources and Subcontractor QuickStart guides to help everyone on a project get up and running.
But where they truly stand out from the pack is their support team. They are available to anyone on the platform from 7am – 7pm and can be accessed directly from the app or via phone. Every month, especially around claims submission time, their team are right there with their subcontractors helping them to submit their claims – if that’s what they require.
While some subcontractors may take issue with the cost of the platform, they find that after a few cycles, most subcontractors do see the benefits and tend to stay on.
Payapps already works with over 80 of the largest builders in the industry and have well over 3000 subcontractors on board – so that is a good indication of the growing use of Payapps as the industry standard for processing payment claims.
At the end of the day:
- Margins are getting tighter
- Every advantage counts
- Real efficiency gains
- The digital transformation benefits are real
Simply put, tools like Payapps are all about getting the paperwork out of the way so that your staff can focus on higher value tasks. And for both builders and subcontractors, less administration and paperwork mean everyone can spend more time doing what they’re really passionate about.
Payapps would love the opportunity to work with you and help realise more value for your business. If you’d like a more in-depth demo of Payapps and see how quickly you’ll see a return on your investment get in touch today.